TaxTMI 
TaxTMI 
TaxTMI 
2022 (2) TMI 1197
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....r referred to as 'the Act') dated 08.10.2013. The Revenue has raised the following grounds of appeal:- "i) On the facts in the circumstances of the case whether , the ld. CIT(A) has erred by deleting the addition of Rs. 1,85,24,060/- on account of retention money even though the matter has not been verified whether or not the retention money has been offered in subsequent years. ii) It is, therefore, prayed that the order of the CIT(A), be set-aside and that the order of Assessing Officer be restored." 2. Brief facts of the case are that assessee is a company and engaged in the manufacture of industrial plant and alcohol based chemical plants and equipments including "Ethyl Acetate Plant'. The assessee filed its return of income for as....
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....ased the retention money after specified guarantee period, which ranges from 3 to 12 months after the commissioning the plant. If the defects are found in the working of the plant, the assessee used to attend and rectified the defects for which no separate charges can be made for the defects. The assessee explained that normal terms for the payments in such contracts are that price payable according to the terms of payment 10% at the time of signing the agreement against submission of indemnity bond/advance bank guarantee. 15% after meeting submission certain basic and details engineering documents or submission of P.O copies of certain major purchases or long delivery items. 65% against dispatches on provision-rate basis and 10% within 30 ....
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....ourt in the case of CIT vs. Simplex Concrete Piles (India) Pvt. Ltd. reported in 70 ITD 109 (Cal) and various decisions. The assessee further explained that during the year, the assessee executed a contract on which Rs. 1.85 crores is the retention money retained by customers in majority of bills for 12 months and that above amount has been shown as income in the subsequent year. The assessee explained that when retention money was received it was shown in AYs 2012-13 and 2013-14 i.e. Rs. 1.38 crores and Rs. 46.32 lakhs respectively. The copy of receipt of retention money was also furnished. 3. The contention of assessee was not accepted by Assessing Officer by taking view on verification of books of account, Assessing Officer noted that f....
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....ht of decision of Hon'ble Supreme Court in Rotrock Control India Ltd Vs CIT (314 ITR 62 SC), Punjab & Haryana High Court in CIT Vs Subrat Datta Chaudhary (197 Taxman 71). The Assessing Officer in his order giving effect passed under section 143(3) read with section 254 dated 19.12.2016, accepted the contention of assessee and no addition on account of retention money was added in all the years. 5. The Ld. CIT(A) after considering the submission of assessee and referring other various judicial decisions held that in the setting aside assessment orders under section 143(3) r.w.s. 254 of the Act in assessee's own cases for assessment years 2002-03, 2005-06, 2008-09 & 2010-11 in ITA's No. 1977, 2600,1774 & 2044/Ahd/2011 respectively and no add....
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....deleted the said addition of retention money. The Ld. Sr.DR submits that as a matter of consistently the issue should have been restored to the file of Assessing Officer and that the Ld. CIT(A) has not followed the principle of consistency rather he himself allowed relief to the assessee. 7. On the other hand, Ld. AR of the assessee submits that ground of appeal, in fact the ground of appeal raised by the revenue is covered by the decision of Tribunal in assessee's own cases for earlier years, wherein the Tribunal restored the similar issue back to the file of Assessing Officer and the Assessing Officer in his order giving effect in all four assessment years and has not made any addition on account of similar retention money in AYs 2002-03....